Moving into Aged Care

The Australian Government has identified five clear steps of placement into aged care facilities:

Step 1

Assessment of eligibility (+ Centrelink assessment if on pension)

Step 2

Finding accommodation

Step 3

Working out the cost (you should receive financial advice by this point)

Step 4

Applying

Step 5

Moving in and settling

The local Aged Care Assessment Team (ACAT) is the first port of call for your loved one (the resident). ACATs are normally based in hospitals and may include a nurse, doctor or social worker whose job it is to make the formal assessment for every person going into care.

Once the resident has been assessed by ACAT, they may suggest some appropriate aged care facilities in the local area, however it is the responsibility of the family to find accommodation.

Selling the home can frequently make your financial situation worse depending on what other assets you own and the amount of bond; however sometimes selling your home is the right decision. We recommend you immediately seek financial advice on the best way to fund the accommodation bond once you have spoken to the aged care facility.

Bond amounts can vary between residents in the same aged care home, as well as between homes, even if they are close to each other. There is no fixed amount that you should pay. The amount you pay is agreed between you and the aged care home. However, if an individual's accessible assets are under 157 000, they cannot be asked to pay a RAD and should pay a daily accommodation contribution (DAC) instead (from 20 March 2015 - 20 September 2015).

A RAD (previously known as an accommodation bond) is a lump sum amount you are required to pay towards your accommodation in an aged care home. A RAD works like an interest-free loan to the aged care facility. Any income earned from the RAD is used by the aged care home to improve accommodation and services.

You need to seek advice immediately after you have been assessed as requiring care from ACAT and have spoken to the aged care facility. It is imperative that no assets are sold before you seek advice as this may limit the options available to you and could cost you a lot of money.

The first step is to arrange a free health assessment with an Aged Care Assessment Team (ACAT) to assess if you are eligible for aged care. Your doctor or local hospital can refer you to an ACAT or you may contact My Aged Care directly on 1800 200 422.